AT&T to subsidize cost of new iphone

[mccldwll]

Important points

1. Scott Moritz was, is and will always be a liar. Never believe anything he writes. For those not familiar with him, he wrote that the iPhone's production was being halved, then when that clearly didn't turn out to be true, said that dropping 4GB model was the same as cutting production in half. He's too stupid to even be a good liar. Legal disclaimer: JMO

2. NO ONE outside of the highest levels of management knows ANY of the terms of the aapl/T iPhone contract. No one. It was never said that it was five years exclusive. That rumor originated with a poorly written USA Today piece. It has possibly been acknowledged that T will support the iPhone and have certain distribution rights for 5 years.

3. If anyone thinks T has/had the upper hand in any dealings with AAPL, please contact me--I have a bridge to sell you. T handed over the keys to the store to get the iPhone, giving unprecedented control to AAPL. They needed each other, but AAPL clearly was in the driver's seat. There certainly would have been benchmarks, incentives, escape clauses and even kitchen sinks in the contract, but everything appears to be going well for both parties so I seriously doubt any major changes have kicked in.

4. It is highly unlikely that 8GB will be around much longer, except possibly to occupy a lower price point spot like the 4 GB did originally. Reason: with all the new apps which will be available for the iPhone, it's in everyone's interest to have more capacity.

5. See point 1 above.

 

[Mikey B]

1. Scott Moritz was, is and will always be a liar. Never believe anything he writes. For those not familiar with him, he wrote that the iPhone's production was being halved, then when that clearly didn't turn out to be true, said that dropping 4GB model was the same as cutting production in half. He's too stupid to even be a good liar. Legal disclaimer: JMO

2. NO ONE outside of the highest levels of management knows ANY of the terms of the aapl/T iPhone contract. No one. It was never said that it was five years exclusive. That rumor originated with a poorly written USA Today piece. It has possibly been acknowledged that T will support the iPhone and have certain distribution rights for 5 years.

3. If anyone thinks T has/had the upper hand in any dealings with AAPL, please contact me--I have a bridge to sell you. T handed over the keys to the store to get the iPhone, giving unprecedented control to AAPL. They needed each other, but AAPL clearly was in the driver's seat. There certainly would have been benchmarks, incentives, escape clauses and even kitchen sinks in the contract, but everything appears to be going well for both parties so I seriously doubt any major changes have kicked in.

4. It is highly unlikely that 8GB will be around much longer, except possibly to occupy a lower price point spot like the 4 GB did originally. Reason: with all the new apps which will be available for the iPhone, it's in everyone's interest to have more capacity.

5. See point 1 above.

Thank you, voice of reason.

The only thing I have to contend with is that I don't think that the AppStore will be the cause of the 8G disappearing. I'm new to the iPhone, but have had a jailbroken Touch for a long time, and you can have several pages of apps that hardly make a dent in your storage space. I mean tons of apps. I think there is need for a lower-tiered price point.

 

[mccldwll]

Thank you, voice of reason.

The only thing I have to contend with is that I don't think that the AppStore will be the cause of the 8G disappearing. I'm new to the iPhone, but have had a jailbroken Touch for a long time, and you can have several pages of apps that hardly make a dent in your storage space. I mean tons of apps. I think there is need for a lower-tiered price point.

You may be right about the apps not taking up much space. But storage in general, especially video which aapl wants to sell, makes it in everyone's best interest to up the capacity.

 

[Sylvan]

Economic Stimulus?

This is awesome news.

The way things are going, I have a suspicion that Bush's economic stimulus plan will simply turn into "Apple stimulus", "AT&T stimulus", and "Rockstar stimulus".

 

[bytethese]

$200 off? I guess AT&T will own me for another 2yrs.

 

[reubs]

From someone who doesn't have an iPhone and loathes the cell phone industry, here are some thoughts (w/o having read all 7 pages...my apologies).

If this turns out to be true then there will be a A LOT (obviously) of iPhones out in the wild, much like any big cell phone (RAZR and Chocolate come to mind), and that might take some of the WOW factor out of it. Will that matter? I don't really know.

Secondly, cell phone contracts are the devil's way of getting up in our bidness, which is ebonics for being all up in our face and annoying the bejeezus out of us. I'm pretty sure we're one of a few countries who still have to sign our lives away to use a product that we'd like to use. Something has got to give with the cell phone industry with us being able to use any phone on any network.

Finally, if this is a two year contract and assuming the iPhone is still in working condition two years from now, would AT&T unlock it for use on any network, or would it still be tied into their system? Assuming, again, that it has the multiband chip that would allow for usage on multiple networks.

Just some thoughts from a casual observer.

 

[backdraft]

Upgrade Plan?

I just hope theres an upgrade plan my iPhone is only 2 months old. I want 3G!!! Well mostly the second camera rumored to go in the front for video chat/conferencing, but 3G wouldn't hurt. lol

 

[kornyboy]

Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/4A102 Safari/419.3)

I certainly hope that this is true. I would love to upgrade of at all possible.

 

[kimguroo]

there is another rumor.
if AT&T sells iphone for $199, they will raise unlimited data plan to $45.
Ouch!

http://apple20.blogs.fortune.cnn.co...ndup-spring-break-edition/?source=yahoo_quote

 

[uMac]

there is another rumor.
if AT&T sells iphone for $199, they will raise unlimited data plan to $45.
Ouch!

http://apple20.blogs.fortune.cnn.co...ndup-spring-break-edition/?source=yahoo_quote

I would be guessing no, because any sane person would pay $200 more upfront rather than $600 over 2 years. They could do some cleaver marketing but in the end customers who took that option would be feeling ripped off after the first year.

 

[QuarterSwede]

The way things are going, I have a suspicion that Bush's economic stimulus plan will simply turn into "Apple stimulus", "AT&T stimulus", and "Rockstar stimulus".

That would be the point of it in the first place, to have people buy things. Personally, mine is going to a new washer/dryer and fridge that we just bought for our new house.

... if this is a two year contract and assuming the iPhone is still in working condition two years from now, would AT&T unlock it for use on any network, or would it still be tied into their system? Assuming, again, that it has the multiband chip that would allow for usage on multiple networks.

Currently, you can unlock a subsidized phone as long as you continue to pay AT&T until your contract is over.

 

[reubs]

The way I feel about the data plan is that I don't need to be accessible to the internet at all times, and just being able to pick up a WiFi signal would be enough for me. That's primarily why I'd stay away from a contract that required a data plan and why the iPod touch is almost more appealing to me.

ETA: I'd also like to see a third, lower-capacity option. I know it seems to go against the iPod model pricing, but I'm sure there are lots of folks who would easily upgrade to the 8 GB from a 4 GB for $100 more, but the 4 GB at a lower price point would open the door to folks who won't need a lot of the apps from the App Store, and it would also be an inexpensive way into the Apple lineup.

 

[sishaw]

This is awesome news.

The way things are going, I have a suspicion that Bush's economic stimulus plan will simply turn into "Apple stimulus", "AT&T stimulus", and "Rockstar stimulus".

Yes, because you live in an alternate universe where no one has medical bills, credit card debt, wants to take a vacation, or needs to buy new furniture. For example.

 

[tdar]

I'm amazed that Microsoft has not released even a Beta version of Windows Mobile with the web features of the iPhone. It is now close to 18 months from the initial iPhone news conference and still no word from Microsoft. What are they doing in Redmond? To me it is unbelievable that Microsoft have left themselves get so far behind.

They are coming...it's just taking forever. WinMO 7

There will be a IE6 for WinMO 6.1 EOY 2008 with full web support including flash and silverlight

 

[guitarman777]

Who in the crap runs up a $100/month bill? I do, but only because I have TWO OTHER PHONES on the account. I'm assuming most people get the 450 minutes plan for about $40 then add on the $20 data plan. That's $60, then add $5 in all those fees and taxes.

I don't know about you, but the amount of time I use my phone for work is through the roof these days. Granted I'm reimbursed by work, and rollover minutes would certainly play into my favor, but right off the bat 450 minutes would never cut it. It'd take me at least four months to get enough rollover minutes to really experience the benefits therein.

 

[tdar]

I said it earlier in the thread and I'll say it again- never gonna happen! People lined up for hours to pay $600. The initial price drop is all we're gonna see. All apple has to do is look at any given forum to see that people are chomping at the bit for 3G at the current or higher price point.

Even if AT&T is allowed to reduce the price I really doubt they will. They just don't need to.

Mikey...Bought any Gas lately...done much food shopping...tried to buy a house?....it's a different world from last summer when people lined up for days to drop $600 + a 2 year commitment for a cell phone.

 

[dwman]

there is another rumor.
if AT&T sells iphone for $199, they will raise unlimited data plan to $45.
Ouch!

http://apple20.blogs.fortune.cnn.co...ndup-spring-break-edition/?source=yahoo_quote

That's the deal breaker for me. Hence the reason I'm still with Sprint's $10 unlimited data plan vs VZ $45 unlimited data plan. If AT&T decides to make up the subsidized iPhone revenue with charging more then twice the current data rate, that's going to be a huge blow for v2.0 sales. Part of what made the 1st iphone so appealing (aside from how it looks) was the cheap $20/month data plan.

They also might give you a choice:

1. Sell the phone for $199 with a $45/month data plan
2) Sell it for $499 or $599 with a $20/month data plan.

 

[QuarterSwede]

...tried to buy a house?...

Actually, I've just done that because the economy's tanked so the housing prices are actually reasonable where I live again. The interest rates are also pretty darn low. But yeah, the rest I agree with.

 

[amk29j]

I'm under an AT&T plan with a cheap subsidized phone, I wonder if I'll be eligible for the deal as well. Just out of curiosity, I'll stop by an AT&T store tomorrow to see how they handle deals on other smart phones for those of us already on a contract.

You can't upgrade if you have a 2-year contract until it is over EXCEPT for the iPhone. I checked a couple of days ago because I last upgraded my phone last July and now (less than a year later) I want an iPhone. And I can get one!... as soon as I get the money for it.

 

[dwman]

Mikey...Bought any Gas lately...done much food shopping...tried to buy a house?....it's a different world from last summer when people lined up for days to drop $600 + a 2 year commitment for a cell phone.

Yes and no. Despite all those things being true, Apple still had a record Q2. People may not actually line up this time around, but they will still buy a $600 phone with a 2 year contract.
I'm obviously generalizing here, but I think people who gravitate toward Apple products tend to have a little more disposable income.

 

[drb6]

You can't upgrade if you have a 2-year contract until it is over EXCEPT for the iPhone. I checked a couple of days ago because I last upgraded my phone last July and now (less than a year later) I want an iPhone. And I can get one!... as soon as I get the money for it.

Yes, but isn't this because there is no 'real' subsidy currently. This might change if this rumor is true, it will be treated like any other phone upgrade.

 

[drb6]

This isn't news yet, it's a rumor. Also, I don't think adding a line to a family plan counts.

Yes thats true, but unfortunately I only have 3 weeks to make a change, in case this does turn out to be news. But I hope you guys are right and this Scott fellow indeed has no clue what he's talking about.

Although, who am I to wish against a $200 discount for anyone else

 

[kdarling]

That's the deal breaker for me. Hence the reason I'm still with Sprint's $10 unlimited data plan vs VZ $45 unlimited data plan.

Just a side note. VZ now has a $30 unlimited email / internet plan for some of its PDA phones. If you qualify for employee rates, it's as low as $24.

 

[joeshell383]

You can't upgrade if you have a 2-year contract until it is over EXCEPT for the iPhone. I checked a couple of days ago because I last upgraded my phone last July and now (less than a year later) I want an iPhone. And I can get one!... as soon as I get the money for it.

That's because it is not currently subsidized.

 

[Island Dog]

This would be a smart move.